Year-End Tax Moves Every Arizona Small Business Owner Should Make Before December 31
By Greater Phoenix Equality Chamber of Commerce · Updated October 30, 2026
December can be a busy month for small business owners. Along with serving customers and wrapping up projects, there are year-end decisions that may affect your records, tax planning, and cash flow. A little preparation now can help you begin the new year with a clearer picture of your business.
This checklist is general planning information for LGBTQ+-owned and allied small businesses in Greater Phoenix. It is not tax advice. Confirm your specific situation, deadlines, and options with your CPA or tax preparer. Federal and Arizona rules can differ, and the right approach depends on your business structure and circumstances. If you need a CPA, the GPECC member directory can connect you with financial professionals in the Chamber community.
1. Review equipment purchases and installation timelines
If you are considering equipment or other business assets, check the delivery and installation schedule before placing an order. For an asset to potentially qualify for a 2026 deduction, it generally must be placed in service by December 31, 2026. That means it is installed, tested, operational, and ready for its intended business use, not simply ordered, paid for, or delivered.
This timing can matter for businesses across many industries: a salon installing a chair or dryer, a café setting up kitchen equipment, or a contractor preparing tools for work. Keep invoices and records showing when the asset arrived, was installed, and became operational.
Section 179 and 100% bonus depreciation may apply to qualifying off-the-shelf assets, subject to the applicable rules. These options work differently, and eligibility can depend on factors such as the asset, business use, and timing. Your tax professional can explain which rules may apply and how a decision could affect future tax years. The IRS provides background on depreciation in Publication 946.
A tax deduction alone is not a reason to make a purchase. Consider whether the equipment supports your operations, whether the cost fits your cash flow, and whether it is genuinely ready to use before year-end.
If you need a professional opinion on timing and eligibility, the GPECC member directory can help you find a CPA or tax professional in the Chamber community — try searching “financial” or “business services”.
2. Check compensation and payroll if you operate an S corporation
If your business is taxed as an S corporation and you work in the business, include compensation in your year-end conversation with your tax preparer. S corporation owners who perform services for the company generally need to receive reasonable compensation through payroll before taking non-wage distributions. The right amount depends on the work performed and other business-specific factors.
Review year-to-date wages and distributions, payroll filings, and any planned year-end bonus or compensation adjustments. Make sure payroll is processed and documented properly rather than treating a last-minute transfer as a substitute for payroll.
The IRS provides an overview of S corporation compensation and medical insurance issues. A CPA or payroll professional can help you review your business’s records and next steps.
3. Talk through retirement contributions
Retirement planning may be another year-end consideration for owners and employees. The right timing depends on the type of plan, how it is set up, and whether a contribution is an employee deferral or an employer contribution. Some actions may need to happen by year-end, while other contributions may be allowed later under the rules that apply to the plan.
Before making a contribution, ask your plan administrator or tax preparer to confirm the relevant deadlines and limits, how contributions affect your business and personal tax returns, and whether the plan’s requirements have been met. Avoid relying on a general online checklist for a plan-specific deadline.
4. Prepare for estimated tax payments due January 15
For many calendar-year taxpayers, the fourth federal estimated tax payment is due January 15, 2027. Arizona’s calendar-year fourth-quarter estimated payment is also listed for January 15, 2027, for taxpayers to whom the state requirement applies. These payments are not necessarily due on December 31, but they belong on your year-end planning calendar.
Review your year-to-date income, withholding, business structure, and any prior estimated payments with your tax professional. If you are unsure whether you need to make a federal or Arizona payment, or how much, ask your CPA or tax preparer to check your situation. The IRS explains estimated tax payment basics, and the Arizona Department of Revenue provides its estimated tax forms and instructions.
5. Close out the books and organize documentation
A clean set of records makes it easier to prepare returns and understand how the business performed. Before the year ends, reconcile business bank and credit-card accounts, review payroll records, and check that sales and expenses are assigned to the right categories. Follow up on missing receipts, invoices, and contractor information.
It can also help to gather documentation for major purchases, business mileage, loan payments, owner contributions or distributions, and reimbursements. If you made a significant change, such as adding a location, hiring employees, or changing your business structure: flag it for your preparer.
This work is useful beyond tax filing. Accurate records support cash-flow planning and give you a stronger foundation for decisions in the new year.
6. Make time for a focused conversation with your tax professional
Bring your questions and a few key documents to a year-end check-in. You might ask:
- Is there equipment or another asset I am considering that should be reviewed before December 31?
- Does my business structure affect how I should handle owner compensation or distributions?
- Which retirement-plan deadlines apply to my situation?
- Do I need to plan for federal or Arizona estimated payments on January 15?
- Are there missing records or upcoming filing obligations I should address?
A tax professional can help you prioritize the decisions that matter for your business instead of trying to resolve every possible tax issue at once.
Looking for a local professional to sit down with? The GPECC member directory lets you search for CPAs, bookkeepers, and other financial professionals within the Chamber community.
Find professional connections through the Chamber
Finding a professional who understands your business and communicates clearly is part of good planning. GPECC members can use the member directory to look for professionals by category or keyword. Try searching “business services” or “financial” to explore relevant member listings.
For tips on making your business listing useful and easy to find, read Member Directory 101: How Your GPECC Listing Drives Year-Round Visibility. LGBTQ+-owned businesses exploring supplier diversity can also review LGBTBE Certification in Phoenix and Why It’s Free for GPECC Members.
The Chamber’s member community is one place to build connections with local businesses and professionals. A directory listing is a starting point; confirm credentials, experience, and fit directly with any professional you are considering.
A practical finish to the year
Start with the decisions that have firm dates: check whether an intended asset can truly be installed and operational by December 31, review payroll and compensation with your preparer if you operate an S corporation, and confirm retirement-plan timing. Then organize your records and prepare for any estimated tax payments due January 15, 2027.
A short conversation with your CPA or tax preparer can help you understand which items apply and what to do next. Planning ahead supports more confident decisions and a steadier start to the year.